Chinese automaker XPeng has reportedly disclosed plans to purchase Didi Global’s electric vehicle unit worth $744 million to establish a new brand, “Project Mona.”
What’s currently known about Project Mona?
XPeng aims to develop and produce two new EVs by the end of 2024 with a price of approximately RMB 150,000 (20,630) under Project Mona.
The EVs will utilize Didi’s automaking program for its technology, the Chinese publication Yica reported.
XPeng also revealed plans to release the first Mona EV in 2024. It will apparently be an A-class intelligent EV.
XPeng can tap Didi’s EV ecosystem for this major project, including its shared mobility market in the country. It will enable the Chinese EV startup to develop a low-cost EV model in the RMB 150,000 price range.
XPeng will also own some of Didi’s R&D team and technologies for the latter’s “Da Vinci” project, reported in March 2022. The Chinese luxury EV maker will reportedly integrate its XNGP and smart cockpit into the planned Mona EVs. It will also directly supervise the project’s R&D and volume production.
Meanwhile, the Mona EV models will sell through Didi’s platforms. It will appeal to corporate and average buyers. Moreover, Didi will also manage the brand’s ecological operations.
This recent report suggests that Didi may have already canceled the Da Vinci project. The source familiar with the matter claims that Didi Chairman/CEO Cheng Wei is not confident in producing EVs and his employees’ capability.
See Also:
- VW Group invests $700 million in XPeng, provides updates on Audi-SAIC partnership
- XPENG records a 27% sales growth in Q2 2023, beating its own forecast
- XPeng receives 25,000 preorders for its G6 e-SUV within just 72 hours of the presale launch
- XPeng stocks jumped following Chinese EV-maker’s introduction of a new production process
- XPeng plans to deploy its driver assistance software to all cities in China by 2024
The partnership will employ performance incentives based on Mona’s volume production and Didi’s sales target milestones. Notably, XPeng aims to achieve two milestones with up to 180,000 qualified car deliveries each.
Recently, XPeng also secured $700 million in investment from German automaker Volkswagen Group.
